Fed Reports Increase in Use of Credit Cards

Consumers borrowed more freely in September, especially when it came to racking up charges on their credit cards, the Federal Reserve reported.

The latest snapshot of people’s appetite to borrow showed that consumer credit rose by a seasonally adjusted annual rate of 5.8% in September from the previous month, or by $9.8 billion.

The increase left Americans’ consumer credit outstanding at $2.05 trillion.

The figures are consistent with a strong retail sales report for September released by the government last month. That report suggested shoppers ignored soaring energy prices and rediscovered their urge to splurge.

Consumers took a bit of a breather in August, when consumer credit grew at a 1.3% rate, or by $2.2 billion, according to revised figures.